Iran’s annual inflation rate surged to 88.6% in June, the highest in recent months, as the Middle East war intensified pressure on an economy already struggling with sanctions and years of hyperinflation, according to official data released on Saturday, AFP reported.According to the Statistical Centre of Iran, inflation during the Persian month of Khordad (May 22-June 21) accelerated sharply, with food prices more than doubling from a year earlier in a country already grappling with soaring living costs.Bread and grain prices rose 138.8% year-on-year, while milk, cheese and eggs became 151.9% more expensive. Prices of red meat and poultry jumped 178.2%, the data showed.By comparison, annual inflation stood at 68% in February, before the outbreak of the war launched by the United States and Israel against Iran.Inflation had earlier reached 52.6% year-on-year in December 2025, when protests over the rising cost of living erupted before expanding into broader political demonstrations.Iran publishes inflation data monthly based on the Persian calendar, under which each year begins in March.For years, the country’s economy has been weighed down by chronic hyperinflation and the sharp depreciation of the rial, largely due to international sanctions.The prolonged rise in prices has steadily eroded household purchasing power, with the economic crisis worsening in recent months and fuelling widespread public protests in December.According to the official figures, the Middle East war has further exacerbated the country’s economic crisis.
